Trade Alert – (FXY) June 6, 2013

As a potentially profitable opportunity presents itself, John will send you an alert with specific trade information as to what should be bought, when to buy it, and at what price. This is your chance to ‘look over’ John Thomas’ shoulder as he gives you unparalleled insight on major world financial trends BEFORE they happen.

 

Trade Alert – (FXY) – Stop Loss

Sell the Currency Shares Japanese Yen Trust (FXY) June, 2013 $100-$103 in-the-money bear put spread at $2.05 or best

Closing Trade

 

6-6-2013

expiration date: June 21, 2013

Portfolio weighting: 10%

 

Number of Contracts=39 contracts

Break of the 50-day moving average is a deal killer here. A 6% rally in the yen is big. Hedge funds are scrambling to cover shorts and several technical breaks

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous. Don’t execute the legs individually or you will end up losing much of your profit.
Keep in mind that these are ballpark prices only. Spread pricing can be very volatile on expiration months farther out.

Here are the specific trades you need to execute this position:

Sell 39 June, 2013 (FXY) $103 puts at……………………$3.25

Buy to cover short 39 June, 2013 (FXY) $100 puts at…..$1.20
Net Cost:…………………………………………………….$2.05

Loss: $2.55 – $2.05 = $0.50

(39 X 100 X $0.50) = $1,950 or 1.95% profit for the notional $100,000 portfolio.

FXY 6-6-13

YCS 6-6-13

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